Volkswagen has started mass production of the ID. UNYX 08, its first model developed jointly with Chinese electric vehicle maker Xpeng, as the German automaker seeks to strengthen its position in the Chinese market, Reuters reported.
The full-size electric SUV is part of Volkswagen’s broader push into new energy vehicles in China, where it faces growing competition from local manufacturers such as BYD and Geely. The model is expected to go on sale in the first half of the year.
The vehicle reflects Volkswagen’s strategy of focusing on local development in China to accelerate production. According to the company, its China-based vehicle architecture allows models to be developed 30% faster.
Volkswagen plans to launch more than 20 new models in China this year. By 2030, the company aims to introduce 50 battery-electric and plug-in hybrid vehicles in the country.
The ID. UNYX 08 is the result of a 2023 technology partnership with Xpeng. Xpeng provides autonomous-driving systems and Turing AI chips for its vehicles. A second jointly developed electric model is expected later this year.
Both vehicles will be produced at Volkswagen’s Hefei plant near Shanghai, which has an annual production capacity of 350,000 units.
Meanwhile, China’s auto market has reported its biggest sales decline in two years, partly driven by weaker demand for electric vehicles.
